Germany: German Federal Council plans to end RETT Blocker Schemes with retrospective effect

Under current German real estate transfer tax (RETT) law it is possible to indirectly acquire up to 100% of the shares in a property holding company without triggering RETT ("RETT Blocker Schemes"). In September 2012, the German Ministry of Finance presented plans for a bill to abolish the RETT Blocker Schemes. After this bill failed in the legislative process, a new bill has been announced. According to an unofficial draft, the proposed new rules are identical to the rules in the former bill and shall have retrospective effect for all transactions after 31 December 2012.